Boeing considers more 737 MAX production cutbacks: Report
FOX Business’ Hillary Vaughn reports on the Boeing whistleblower’s testimony before Congress and what the FAA intends to do to punish Boeing over 737 Max issues.
Boeing may cut back or even stop further production of its 737 MAX jets as the airplanes’ future remains uncertain, The Wall Street Journal reported Sunday.
People familiar with the matter told the Journal that Boeing management is increasingly seeing a production pause as the best option, according to the report. But cutting production would increase Boeing’s cost per plane, and could even potentially bring about job cuts and furloughs that would affect the industry beyond Boeing.
FOX Business has reached out to Boeing regarding the report.
BOEING DELIVERIES PLUNGE AMID 737 MAX CRISIS
FILE - In this March 27, 2019, file photo taken with a fish-eye lens, a Boeing 737 MAX 8 airplane sits on the assembly line during a brief media tour in Boeing's 737 assembly facility in Renton, Wash. (AP Photo/Ted S. Warren, File)
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The 737 MAX has been grounded worldwide since earlier this year when a second of the jets crashed in a matter of months. The grounding has caused mass disruptions across the travel industry, forcing airlines to cancel flights and reroute equipment.
The report came as Boeing’s board is meeting in the wake of discussions between company executives and Federal Aviation Administration officials last week. The FAA was reportedly doubtful that the jets could return to service in January as Boeing had estimated.
Boeing’s jetliner deliveries have dropped dramatically this year. Through November, the company delivered just 345 jets, a 51 percent decline compared to a year earlier.
BOEING CEO MEETS WITH FAA ADMINISTRATOR OVER 737 MAX GROUNDING TIMELINE
A number of Southwest Airlines Boeing 737 MAX aircraft are parked at Southern California Logistics Airport on March 27, 2019 in Victorville, California. Southwest Airlines is waiting out a global grounding of the MAX 8 and MAX 9 aircraft at the airpo …
The company has also pledged to pay $50 million to families of people killed in the 737 MAX crashes and set aside billions for production costs and customer compensation.